Telecom's board chairman says CEO Paul Reynolds deserves his $5m salary package, which was labelled "shameless greed" by a union head today.

The EPMU hits out at Telecom's decision to pay CEO Paul Reynolds his full performance bonus, despite the company suffering a 43.9 per cent drop in profits.

Telecom will pay chief executive Paul Reynolds his full performance bonus despite a fall in profits.

Telecom has this morning reported a 43.9 per cent fall in full year net profit to $398 million.

Contractor Transfield Services is proposing to make 154 staff redundant, saying it needed to adapt its telecommunications business to stay ahead of significant changes.

Customers of new mobile provider 2degrees are pouring out their frustration at the company's website woes.

From November 1 it will be illegal for drivers to text or talk on a handheld mobile phone while driving.